With car prices still high and electric vehicles becoming the new norm, more drivers in the UK are rethinking the idea of owning a car. Instead of saving up tens of thousands of pounds or taking out large loans, many people are turning to companies like Leasys for car leasing – and for good reason. In 2025, leasing offers a practical, flexible and financially smart alternative to buying, whether for personal use or business needs.
What Makes Leasing So Appealing?
Leasing a car means paying a fixed monthly fee to use a vehicle for a set period, usually 2 to 4 years. It’s similar to a subscription: you enjoy the car without worrying about resale value, repairs, or depreciation.
Here are a few reasons why leasing has gained popularity in the UK:
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Lower upfront costs – You don’t need a huge deposit like when buying.
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Fixed monthly payments – Budgeting is easier and more predictable.
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No depreciation worries – You hand the car back at the end without selling it.
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Regular upgrades – Get a new car every few years with the latest tech.
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Tax benefits – Businesses can offset lease costs against profits and reclaim VAT.
For Businesses, It’s a No-brainer
For companies, leasing offers strong tax advantages. Business Contract Hire (BCH) allows firms to deduct lease payments from taxable profits. If the car emits under 110g/km CO₂, businesses can typically reclaim 100% of the VAT and lease payments. Electric cars are even more appealing thanks to very low Benefit-in-Kind (BIK) tax rates – just 2–3% in 2025.
Fleet managers also love leasing because it keeps cars off the balance sheet. That means fewer assets to manage, and less capital tied up in vehicles. Plus, businesses can easily switch to EVs and meet sustainability targets faster.
The EV Effect: Leasing Fuels the Electric Shift
Electric cars are here to stay – but they’re still more expensive upfront than petrol or diesel models. Leasing makes EVs accessible by spreading the cost over time, allowing drivers to test new electric models without a long-term commitment.
In fact, over half of all new company cars leased in 2024 were fully electric. And for personal drivers, leasing is a great way to enjoy the benefits of electric – lower running costs, no road tax, and access to clean air zones – without the stress of battery resale or outdated technology.
All-Inclusive Options Are a Game-Changer
One of the biggest advantages of leasing is convenience. Many leasing plans include road tax, warranty coverage and breakdown assistance. Some providers even offer maintenance packages covering servicing and MOTs for a small monthly fee.
And it’s not just for businesses. More personal leasing deals now include “complete care” options, where everything – even insurance – is bundled into one monthly payment. That’s hassle-free motoring at its best.
Online Platforms Are Leading the Way
The digital shift in leasing has made it easier than ever to get started. You can now lease a car entirely online – from browsing models and setting your mileage to signing the contract.
One standout platform is Leasys, which lets you lease a vehicle completely online in the UK. With a wide range of cars, including EVs, and flexible terms, it’s a go-to option for drivers looking for simplicity, speed, and transparency.
Is Leasing Right for You?
Leasing isn’t for everyone – if you drive very high mileage or want to own a car long-term, buying may still be better. But for most drivers, especially those who prefer low commitment, up-to-date tech, and manageable monthly costs, leasing ticks all the boxes.
And with the way the automotive world is changing – from electrification to digital platforms – leasing offers the flexibility to adapt without locking yourself into long-term ownership.